Nafta Advantages
Institutions are a major part in the daily life for all Americans because they set the standard for how society and business operate. One institution that has recently been in the news is the North America Free Trade Agreement or NAFTA for short. NAFTA is a trade deal signed in 1994 by the U.S., Canada, and Mexico that eliminated many of the taxes and tariffs on goods trade between the three countries. The main purpose behind the creation of NAFTA was to provide the legal framework to allow goods to more easily be traded across the states boarders. While the original intent of NAFTA was to boost the economies of all parties involved, NAFTA has been making headlines recently because many organizations and people have openly voiced their dislike for the terms of the agreement. Trade representatives from the U.S believe that NAFTA has “fundamentally failed many
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NAFTA is one example of an institution that has an effect on the economy and that is why NAFTA has become an issue for lawmakers. As previously stated, U.S. trade representative believe that the U.S. is not benefiting as much as it should from the NAFTA agreement. That is why the U.S. government, an organization, is pushing for a change of the agreement. U.S. officials want to see the interest of America better represented in the agreement through a formal change of the institution. However, the other organizations in the agreement, Canada and Mexico, do not feel the same way as the U.S. Both nations have benefited a great deal from the NAFTA agreement and they are resistant to change. This clash in opinion on the benefit of the agreement is an example of why institutional change is a slow process. Since multiples countries are involved, they are looking out for their own individual
NAFTA is one example of an institution that has an effect on the economy and that is why NAFTA has become an issue for lawmakers. As previously stated, U.S. trade representative believe that the U.S. is not benefiting as much as it should from the NAFTA agreement. That is why the U.S. government, an organization, is pushing for a change of the agreement. U.S. officials want to see the interest of America better represented in the agreement through a formal change of the institution. However, the other organizations in the agreement, Canada and Mexico, do not feel the same way as the U.S. Both nations have benefited a great deal from the NAFTA agreement and they are resistant to change. This clash in opinion on the benefit of the agreement is an example of why institutional change is a slow process. Since multiples countries are involved, they are looking out for their own individual